Nearly all cryptocurrency exchanges have higher taker fees than maker fees, but the spread can vary a lot. On one extreme, there's BitMEX, which charges % on takes but pays a % rebate on provides. Binance, on the other hand, has a tiered fee structure with taker fees only slightly higher than maker . Taker: When you place an order at the market price that gets filled immediately, you are considered a taker and will pay a fee (for GDAX that is % and % for BTC books and % and % for ETH books depending on your volume; the more you trade, the lower your fee is over time). Oct 26, · Taker: When you place an order that trades immediately, by filling partially or fully, before going on the order book, those trades will be "taker" trades.. Trades from Market orders are always Takers, as Market orders can never go on the order book. These trades are "taking" volume off of the order book, and therefore called the "taker.".
Btc maker vs takerWhat "Maker" and "Taker" Mean – feuerwehr-matzenbach.de
Have you not noticed this on Binance and some other exchanges where they have maker and taker fees structured like this; charging different fees for makers and takers? So what are maker and taker fees and what it means to be a maker and a taker? Also why do cryptocurrency exchange uses this model? Exchanges charges maker and taker fees from the users depending on their trade type.
To understand this lets first understand the two of the common trade types that is limit orders and market orders. Limit orders Makers : Limit orders are orders in which users attempt to buy lower than the current market price and sell higher the current market price.
In other words they set maximum price for your buy orders and minimum price for your sell orders. These type of orders are not executed right away.
Instead the trader have to wait until an user buyer or seller is ready to accept their sale price. Users who uses market order are the ones who accepts your trade offers immediately. This type of trades are fast and simple where the orders get filled immediately at the best available price. In most cryptocurrency exchanges the maker fees are usually zero or lower than the taker fees. Why is that? In order to understand the concept of maker and taker you need to first understand the order book which is nothing but the list of all orders for a particular trading pair.
The order book contains both buy orders and sell orders. Now do not confuse it with buyers and sellers. Makers are users who make orders to the order book, increase the size of the order book thus increasing liquidity to the exchange. Whereas takers are users who take away orders from the order book, decrease the size of the order book thus consuming liquidity.
In both the above examples you are the maker. Whether it is buy or sell; you place order with a price different from the current market price hence your order enters the market order book either partially or fully. Now your limit order will not be filled immediately. Orders that sits in the order book will only be executed when someone market taker matches it. It will sit there until it gets filled, or expires, or you cancel it.
The orders from market takers never gets in to the order book instead they agree with the price that is already listed on the order book. Since they take away offers from the order book they are called takers and hence they pay taker fee.
To become a market taker one should be willing to pay the lowest buying price to sell and highest selling price to buy. But why taker fees are usually higher than the maker fees and how does exchange benefit from this model? To understand this lets consider the following situation:.
Now by adding additional BTC to the exchange order book you are providing liquidity to the exchange. This will help in bringing more volume to the exchange and thus enhancing the overall trading experience for other users. As it is the current selling price and it is already in the order book; your order gets filled immediately. Asked 3 years, 6 months ago. Active 2 years, 9 months ago. Viewed 17k times. Please see the attached pictures as a reference If I sell my 0.
Marco Marco 1 1 gold badge 6 6 silver badges 11 11 bronze badges. See money. Active Oldest Votes. The other way around, if you sell into a order already posted, you pay the fee, and they do not.
In this case, it is 0 Taker fee is when you complete someone else's order, in which in your case, its currently. Take a look. First know who is maker and who is taker? Usually taker fee will be higher than maker fee. LearningTurtle LearningTurtle 11 2 2 bronze badges. Joe Joe 4 4 bronze badges. Sign up or log in Sign up using Google. Sign up using Facebook.
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